TORONTO, Nov. 30, 2011 /CNW/ - Canada Lithium Corp. (TSX: CLQ) (OTCQX:
CLQMF) announced today that construction at its Quebec Lithium Project
has advanced to the point that the structural steel of the process
plant is now being erected. The Company has also appointed a senior
marketing professional whose role is to market the Company's primary
product, battery-grade lithium carbonate, the first production of which
is planned to occur in 2013. A key aspect of marketing will focus on
Initial site preparation was completed in September of this year. The
pouring of concrete footings and foundations followed in October and
preliminary civil, structural and steel work has commenced. The metal
cladding of a portion of the mine-truck garage is now in place. GENIVAR
Inc. ("GENIVAR") and Met-Chem Inc. ("Met-Chem") have completed
approximately 90% of the detailed process engineering design, and
tender packages have been issued for all major items of equipment.
Contracts have been awarded for the crushing circuit, kiln, ball mills,
flotation circuit and high-voltage switch gear. At this stage of the
development schedule, firm orders, fixed tenders or detailed supply
offers have been made for approximately 30% of the budgeted capital
expenditure. The first major process equipment deliveries are scheduled
for April 2012. The Company has also received committed offers of lease
finance for mining equipment from major equipment suppliers. The main
mining fleet is scheduled to be on site by May 2012.
Photometric sorting testwork on the granite waste rocks (primarily black
in color) and spodumene ores (white) has been completed in Germany.
The tests indicate that a significant amount of waste rock can be
removed from the ore stream prior to entering the processing plant,
thus reducing waste in the process stream and increasing lithium feed
grade. The design phase for the photometric installation within the
crushing circuit is under way. Preliminary scheduling indicates
installation could occur during commissioning of the lithium carbonate
circuit in early 2013.
Lithium hydroxide metallurgical testwork, completed at SGS Lakefield
laboratories, has demonstrated that the flow sheet design may be able
to produce lithium hydroxide products suitable for battery-grade
applications. GENIVAR and Met-Chem are reviewing the design criteria to
incorporate a 2,000-tonne-per-year lithium hydroxide circuit within the
Québec Lithium processing plant. Review of the lithium hydroxide market
GENIVAR continues to update the project schedules and budgets on a
monthly basis and is scheduling for commissioning of the processing
plant in the fourth quarter of 2012 and production of first lithium
carbonate in the first quarter of 2013. This schedule is subject to
winter construction constraints, lithium market conditions, equipment
deliveries, construction schedules, permitting and completion of
financing. Applications for both the Mining License and tailings
disposal license are proceeding through the Provincial approval
process. Capital cost estimates for the construction of the project to
produce 20,000 tonnes per annum of 99.5% battery-grade lithium
carbonate has been revised from US$202 million to US$207 million to
allow for optical (photometric) sorting equipment and minor refinements
to the flow sheet. As of September 30, 2011, the Company had $112
million cash on hand. The Company is in discussions with domestic and
international financial institutions to complete the debt financing
required for the remainder of the capital expenditures to build the
mine and processing plant.
AMC Mining Consultants is finalizing an updated Mineral Resource
estimate following completion of a drill program earlier this year.
Appointment of Shaun McCurdy, Vice President, Marketing
The Company is very pleased to announce the appointment of Shaun McCurdy
as Vice President, Marketing. Mr. McCurdy will be responsible for
marketing the Company's lithium carbonate, lithium hydroxide and
spodumene production from its Québec Lithium operation. Mr. McCurdy
has over 20 years of global experience in the marketing of minerals and
mineral commodities. Most recently he was Product Manager, Cobalt and
Copper, for Switzerland-based Eurasian Natural Resources Corp. He has
also held senior marketing posts with Nikanor, Katanga Mining and
Sherritt International. Apart from the usual marketing functions,
which include overseeing sales strategy, marketing activities, market
research and customer service functions, Mr. McCurdy has extensive
experience in negotiating and administering off-take agreements and he
will now take over negotiations with potential customers who have
previously received lithium carbonate samples.
About Canada Lithium Corp.
The Company holds a 100% interest in the Québec Lithium Project near Val
d'Or, the geographical heart of the Québec mining industry. The Company
plans to build an open-pit mine and processing plant on-site with
capacity to produce approximately 20,000 tonnes of battery-grade
lithium carbonate. Metallurgical tests have produced battery-grade
lithium carbonate samples. The Company trades under the symbol CLQ on
the TSX and on the U.S. OTCQX under the symbol CLQMF.
Cautionary Statement Regarding Forward-Looking Information
This press release contains "forward-looking information" within the
meaning of applicable Canadian securities legislation. Generally,
forward-looking information can be identified by the use of
forward-looking terminology such as "plans", "expects" or "does not
expect", "is expected", "budget", "scheduled", "estimates",
"forecasts", "intends", "anticipates" or "does not anticipate", or
"believes", or variations of such words and phrases or statements that
certain actions, events or results "may", "could", "would", "might" or
"will be taken", "occur" or "be achieved".
Forward-looking information is based on reasonable assumptions that have
been made by the Corporation as at the date of such information and is
subject to known and unknown risks, uncertainties and other factors
that may cause the actual results, level of activity, performance or
achievements of the Corporation to be materially different from those
expressed or implied by such forward-looking information.
Although the Company has attempted to identify important factors that
could cause actual results to differ materially from those contained in
forward-looking information, there may be other factors that cause
results not to be as anticipated, estimated or intended. There can be
no assurance that such information will prove to be accurate, as actual
results and future events could differ materially from those
anticipated in such information. Accordingly, readers should not place
undue reliance on forward-looking information. The Corporation does not
undertake to update any forward-looking information referenced herein,
except in accordance with applicable securities laws.
SOURCE CANADA LITHIUM CORP.
For further information:
Peter Secker, President and CEO (416) 361-2821
Olav Svela, Director, Investor Relations (416) 361-2821 or (416) 479-4355 or email firstname.lastname@example.org
Christine Stewart, Renmark Financial Communications Inc. (416) 644-2020 or email email@example.com
Please visit the Canada Lithium website at www.canadalithium.com.
Corporate Office: 401 Bay Street, Suite 2010, P.O. Box 118, Toronto, ON, M5H 2Y4